Court Enters Final Judgment Against Microcap Company and Orders Penalty for Fraudulent Press Releases

SEC Investor News

On November 2, 2022, the United States District Court for the Eastern District of New York entered a final judgment against In Ovations Holdings, Inc. (OTC: "INOH"), a Colorado corporation headquartered in Wabbaseka, Arkansas.

The SEC's Complaint, filed on September 5, 2018, alleged that from at least 2014 through 2015 Ovations and its then CEO issued materially false press releases to fraudulently induce investors to buy Ovations stock. According to the SEC's Complaint, the CEO received approximately $250,000 from one or more stock promoters at least partly in return for the CEO's role in issuing Ovations' false or misleading press releases.

The final judgment entered against Ovations enjoins it from violating the antifraud provisions of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder and imposes a civil penalty of $150,000.

A final judgment against the prior CEO was entered on October 6, 2022 (LR No. 25559).

The SEC appreciates the assistance of the U.S. Attorney's Office for the Eastern District of New York.

Read the original litigation release from the U.S. Securities and Exchange Commission here.

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